Intu warns CVA glut will hit rental income

Intu Metrocentre in Gateshead

Intu has warned its rental income will fall below expectations this year following a “higher than expected level of CVAs”.

The property landlord, which operates shopping centres including Lakeside in Essex and Newcastle’s MetroCentre, said it expects like-for-like rental income to come in between 4% and 6% lower than last year.

Intu said the glut of CVAs across the retail and food and beverage markets, coupled with a “slowdown in new lettings” sparked by retail and political uncertainty, forced it to revise its full-year guidance.

The mall owner said it had recorded a “stable” start to 2019, having secured 53 long-term leases in the period from January 1 to May 2. The combined deals are worth £6m in annual rent, Intu said.

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